Archive for nigeriang

MY THOUGHTS: That charade called election

MY THOUGHTS: That charade called election

And we all thought
that football should bring enjoyment – the recent debacle loosely
referred to as the NFF elections draws attention to the less than
attractive side of the game. That it was a flawed process from start to
finish is stating the obvious. England’s Rugby Union had Bloodgate,
Golf had Tigergate, and Formula One had Crashgate, now we have our very
own NFFgate.

The election was
one roller coaster – initially scheduled elections were rightly
postponed only for the NFF to hold them a week later despite court
orders not to do so; Harrison Jalla, President of the National
Association of Nigerian Footballers (NANF) was escorted by police in a
bid to stop the elections and was met by armed police courtesy of the
security team at the NFF; Presidential candidate, Segun Odegbami sent
two written request to FIFA to intervene and the world football
governing body previously swift to act in the wake of the post-World
Cup suspension of all national teams, has been mysteriously struck
dumb. Several candidates pulled out of the elections as a matter of
integrity but votes were still counted for them. What an auspicious
start! There is no gainsaying that new blood is desperately needed in
our football administration. This foundation isn’t shaky, it’s
nonexistent. Nigerians had been hoping for a messiah and here we don’t
even have a John the Baptist. There is simply no recollection of the
NFF doing or achieving much without controversy.

If what we have at
the moment is an illegally elected Board, how do they plan to gain
acceptability? It would appear that is not their primary concern. It is
truly a sad period in the history of our football. Just when one
thought football has reached its nadir of decay, impossibly a new low
rears its head. It can be concluded that the expected shake-up is not
going to happen with this new executive. So it’s business as usual
while we watch helplessly from the sidelines.

Plunging to new depths

It’s not just
football that is in crisis, all our sports have sunk to new depths.
There are very few positive results to report in any aspect. Take the
forthcoming New Delhi Commonwealth Games; preparations are so far below
the radar as to have become invisible. The Games are to be held in
October and there is what we can call a deafening silence surrounding
them.

I’ll share a quote attributed to the president of the Athletics Federation of Nigeria:

“We are taking
steps to ensure successful (sic) outing at the Games but that may not
happen if our top athletes don’t approach the whole issue with the
seriousness it deserves.”

The first take-away
here is that one can actually use a good amount of words without saying
a single thing worthy of note. Mr President, would you care to outline
the steps you are taking? Also, could you explain what you mean by the
‘whole issue?’ The second take-away: if one is in a position of
authority, certain responsibilities come with this and it’s no good
passing the buck. Mr President, how on earth will the preparations of
the AFN be affected by the athletes’ approach? You do your work and
they’ll do theirs. For me, his words sum up the general attitude in
sports administration – a lot of flowery statements to disguise a lack
of specific strategy.

Comparable to the narrator in Robert Frost’s poem, ‘The Road Not
Taken’, who faced a crucial choice at the fork of a road, the Sports
Ministry also needs to make a choice. The figurative forked road
becomes the future of Nigerian sports. There is a need to evaluate the
choices open to the ministry in the quest to improve sports in Nigeria,
act decisively on this and make a difference.

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Pakistan credibility reaches breaking point

Pakistan credibility reaches breaking point

The corruption
scandal that exploded this week is the latest damaging blow to Pakistan
cricket and former players fear it could be the one that finally
crushes the credibility of the sport in the South Asian nation.

Over the last few
years, ball-tampering accusations, doping scandals, security problems
and dressing room intrigues have all contributed to a volatile cricket
culture without severely denting the popularity of the game among
Pakistanis.

However, the
British police investigation into allegations that players Salman Butt,
Mohammad Amir and Mohammad Asif took bribes to fix incidents during the
fourth test against England last week looks like stretching that
loyalty to its limits.

“We have one of the worst cricket systems in place,” former test captain Aamir Sohail told Reuters.

Sohail and his
fellow former captain Javed Miandad fear this latest scandal might be
the straw that breaks the camel’s back for Pakistan’s millions of
cricket fans.

“I think even the people have had enough of this indiscipline in the team,” Miandad said.

Political interference

Political analyst
Kamran Khan believes Pakistan is so regularly haunted by controversy
largely because of political interference in the running of the game.

The country’s president is chief patron of the Pakistan Cricket Board (PCB) and has the authority to appoint its chairman.

“In no country does the president or prime minister appoint someone to head a sports body,” he said.

“In Pakistan merit
is ignored when appointing people to run the board and they remain
unaccountable and that is root cause of the problems we see in our
team.”

In March, the board
banned and fined seven players for indiscipline and misconduct on the
Australian tour but political clout as well as public and government
pressure saw five return to the national team after just three months.

Imran Khan, who led
Pakistan to a World Cup triumph in 1992 and is now a politician,
believes the problems of Pakistani society are reflected in the cricket
set-up.

“When the players
see corrupt politicians in governance, when they see people pardoned in
financial scams, they think we can also get away with this,” he said.

“Unfortunately this
scandal has come as a demoralising blow for many Pakistanis, wherever I
go people ask me what is going on, it is a heartbreaking situation.”

Even though
security issues have meant no home international cricket for the last
17 months, thousands of fans still pack the stadiums for the national
Twenty20 tournament.

As further
testament to the game’s importance, even reporting of the floods which
have killed more than 1,600 people and made at least six million
homeless has been sidelined by coverage of the cricket scandal over the
last few days.

“Cricket is one
thing that still binds together the Pakistani people, who have to cope
regularly with major problems like terrorism, rising inflation,
religious intolerance and now these devastating floods,” cricket
analyst Saad Shafqat added.

Talented players

The country also
continues to produce a string of talented players, among them the trio
at the centre of the allegations currently being investigated.

Songs berating the
players and officials and hot-tempered discussions have dominated the
airwaves in Pakistan with one lawmaker demanding the players be brought
home in handcuffs.

Pakistan cricket
has always been a passionate affair, however, with victories sparking
all-night celebrations and defeats prompting sometimes violent
reactions.

Even if the
allegations prove to be unfounded and the fans remained loyal, the
scandal would do nothing to improve Pakistan cricket’s reputation
outside the country, said another former captain.

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‘Nigerian banks need years to recover ratings’

‘Nigerian banks need years to recover ratings’

It will take at
least two years for Nigeria’s banking industry to return to investment
grade rating as it recovers from the impact of last year’s $4 billion
bailout, the country’s oldest ratings agency said on Tuesday.

In a report
published this month, Agusto & Co assigned a Bb moderate risk
rating with positive outlook to the banking sector, citing weak
capitalisation and a sharp deterioration in credit quality, but said it
expected profitability to improve.

Yinka Adelekan,
Agusto’s head of financial institutions, told Reuters a re-rating to
investment grade was possible in 2 – 4 years, once banks bailed out
last year are recapitalised.

“We see a recovery in the medium term,” Ms. Adelekan said in an interview in her office in Lagos.

Global ratings
agency, Standard & Poor’s, which rates Nigerian banks in the single
B category, said in June the sector continued to be “high risk.” In
March, Fitch said it expected Nigerian bank earnings to remain under
pressure throughout 2010.

Adelekan said the
industry’s average return on equity (ROE) was expected to climb back to
17-18 percent in two years, from a negative 56 percent currently as
lending resumes and bad loans are re-financed with the assistance of
the central bank.

The central bank
said in May it would make available 500 billion naira ($3.3 billion) to
stimulate credit to the country’s troubled airline, power, and
manufacturing sectors to help firms indebted to banks to refinance
loans over a 10-15 year period.

Nigeria is also in
the process of setting up an asset management company (AMCON) which
will buy non-performing loans from banks in exchange for government
bonds and help restore credit flows in sub-Saharan Africa’s
second-biggest economy.

AMCON also aims to make the nine lenders rescued in last year’s bailout more attractive to new investors.

The central bank
said two weeks ago it had received bids for four of the nine rescued
lenders and expected bids for the remaining banks to be ready by the
end of August.

Adelekan said she
did not expect deals to recapitalise the rescued banks before 2012, by
which time the troubled lenders would be publishing full-year results
reflecting AMCON’s purchase of non-performing loans.

“I think investors
will wait to see things properly by December 2011 before they say we
are coming in,” she said, adding that many investors had burned their
fingers in the stock market crash and would be shy of returning too
soon.

Nigeria went
through a first round of banking sector consolidation in 2005, which
reduced the number of lenders to 25 from 89. Analysts have said they
expect the country to have 15 banks at the end of current reforms.

Adelekan said the experience of 2005 showed the process of consolidation would take several years to settle.

“From the
experience we had when M&A took place in the past, some banks took
three years to fully wrap up a transaction and become fully operational
to be able to post profits,” she said.

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Mauritius needs $7.3 billion for infrastructure

Mauritius needs $7.3 billion for infrastructure

Mauritius needs to
raise some 225 billion rupees ($7.31 billion dollars or about N1.6
trillion naira) over the next 10 years to finance its public
infrastructure development, finance minister, Pravind Jugnauth, said on
Thursday.

The minister also
criticised banks’ reluctance to lend, saying this could have a
disastrous effect on the country’s capital formation and economic
growth.

The amount needed for infrastructure is expected to rise to about 1
trillion rupees once the amount required for private investment is
added, Mr. Jugnauth said.

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Foreign consultants to value Algerian Orascom unit

Foreign consultants to value Algerian Orascom unit

International
consultancy firms will be involved in assessing the value of the
Algerian unit of Egyptian operator, Orascom Telecom, and the valuation
will be completed this year, Algerian government ministers said on
Thursday.

Orascom Telecom is
selling its lucrative Algerian unit, known as Djezzy, to the Algerian
government after it was hit with back-tax demands, blocked from
transferring money abroad, and prevented from selling the unit to South
Africa’s MTN.

“We have a
ministerial committee. We have also an Algerian consultancy firm
working with foreign consultancy firms to determine the financial value
of Djezzy,” telecommunications minister, Moussa Benhammadi, told
reporters.

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Oil explorer targets East African oil

Oil explorer targets East African oil

Oil explorer,
Tullow Oil, says it is buying 50 percent stakes in six exploration
licences in Kenya and Ethiopia, as the hunt for oil in East Africa
gathers pace.

Tullow said on
Thursday that the positions it is acquiring are in the East African
Rift Basin, which has a similar geology to Uganda’s Lake Albert Rift
Basin.

The East African Rift Basin has oil fields big enough to turn Uganda into a top-50 oil producer.

London-listed Tullow will become the operator of five licences, as part of a deal with Canadian explorer, Africa Oil Corp.

Interest in East
Africa, which is much less explored than West Africa, has been rising
on the back of Tullow’s Ugandan discovery and a gas find by U.S. firm,
Anadarko, off the coast of Mozambique in February.

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Mortgage bank posts 54 percent increase in turnover

Mortgage bank posts 54 percent increase in turnover

The chairman of
Haggai Savings and Loans Ltd., Bode Osunkoya, on Thursday, said the
bank recorded gross earnings of N712 million in the 2009 financial year
ending on December 31, 2009.

Mr. Osunkoya told
the News Agency of Nigeria that the figure represented an increase of
54 percent against its earning of N462.9 million in 2008. He said that
the bank’s profit before tax increased from N8.03 million in 2008 to
N142.9 million in 2009, representing an increase of 1,678 percent.

The bank chairman
said that a final dividend of 5 kobo per ordinary share would be paid
to the shareholders for the year ended December 31, 2008, while 15 kobo
per share would be paid to them for 2009.

Adeleye Babatunde,
one of the shareholders, urged the bank to embark on housing schemes
that would enable the shareholders to enjoy the full benefits of being
part owners.

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Ministry develops draft regulation on vehicular emission

Ministry develops draft regulation on vehicular emission

In its effort to
reduce health hazards faced by Nigerians from vehicular emission, the
federal government has developed a draft document on “air quality
management action plan.”

Ahmed Alfa, the
deputy director, pollution control department, Federal Ministry of
Environment, in Abuja, on Thursday, said the document would be
implemented from January 1, 2011.

Mr. Alfa said the draft document had been forwarded to the Minister of Environment for approval.

He said that after
the approval, the draft would become a working document for all
organisations involved in air quality management such as the National
Union for Road Transport Workers (NURTW), among others.

“Our concern is to
make sure that it takes effect from January 1, 2011. Most of the air
pollution in Nigeria is caused by automobiles,” Mr. Alfa said.

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Expert wants African governments to boost agriculture

Expert wants African governments to boost agriculture

An official of the
Alliance for Green Revolution (AGRA) has called on governments in
Africa to put in more efforts toward sustaining agriculture.

Akin Adeshina, vice
president, policy and partnership, AGRA, in Accra, on Wednesday, said
that there were many investment opportunities in agriculture, but these
could only be harnessed if comprehensive changes in its development
were made.

Mr. Adeshina said
every operator must realise that African agriculture could not be
sustained without “introducing technology, providing solutions to the
agricultural modernisation challenges, and seizing all emerging
opportunities.”

AGRA was
established in 2006 to achieve a smallholder-based African Green
Revolution, transform African agriculture into a highly productive and
sustainable system, and ensure food security in Africa.

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Market capitalisation continues its free fall

Market capitalisation continues its free fall

The decline in
equities’ market capitalisation at the Nigerian Stock Exchange (NSE)
continued on Thursday as nearly N11 billion was lost, reflecting 0.18
percent downturn. It had on Wednesday lost N5.19 billion.

The market
capitalisation closed Thursday’s transaction at N5.930 trillion, from
Wednesday’s figure of N5.941 trillion. The NSE All-Share Index also
shed 43.87 units or 0.18 percent, down from 24,247.05 basis points to
close at 24,203.18.

Market analysts at
Resource Cap, a portfolio management company, said, “The bearish trend
being experienced now is as a result of investors selling in
anticipation of another round of rebound in the market.”

Notwithstanding the
pessimistic mode in the market, Olugbenga Emmanuel, finance analyst at
WealthZone Company, an investment advisory firm, said the present value
of stocks, which are at an all time low, “poses as opportunity for long
term investment.”

Meanwhile, since
the resumption of Emmanuel Ikazoboh, the NSE interim administrator, the
Exchange has being making some trading data available to market
operators free of charge. The NSE usually charges a minimum of N11, 000
on some of this information. Sola Oni, the NSE’s spokesperson, said,
“What you are seeing in the market now is the new development of
operation.”

Mr. Oni said the Exchange wants to make more information available to the investing public.

Low gainers

Of the 130 equities
traded on Thursday, a total of 22 stocks appreciated in price, 37
stocks depreciated, while 71 closed at their previous trading prices.

African Petroleum
and Ashaka Cement topped the price gainers’ table with an increase of
N1.41 and N1.00 on their opening prices of N28.78 and N20.00 per share
respectively. PZ Cussons Nigeria and Costain West Africa followed in
the chart with an increase of 50 kobo and 31 kobo, to close at N32.50
and N6.55 per share.

On the flip side,
Chevron and Cadbury Nigeria led the price losers’ chart with a loss of
N3.90 and N1.05, to close at N81.70 and N26.35 per share. Nigeria
Breweries and UAC Nigeria followed with a decrease of N1.00 and 88 kobo
on their initial prices of N71.00 and N41.14 per share.

Banks lead

The banking
subsector maintained its lead as the most active with 143.457 million
quantities of shares, valued at over N1.280 billion. The subsector’s
volume was driven by shares of GuarantyTrust Bank, Access Bank, Zenith
Bank, First Bank, and Finbank. The five banks were also the most traded
stocks on Thursday.

The food/beverages
subsector was second in the chart with 10.251 million shares valued at
N211.043 million. Dangote Sugar, National Salt Company, and Big Treat
boosted the subsector’s volume.

Trading activities
in the information communication subsector was third highest, with
10.143 million shares valued at N7.102 million. Volume in the subsector
was largely boosted by deals in shares of Chams Nigeria and Starcomms.

At the Exchange’s
floor yesterday, C & I Leasing, an equipment rental firm, presented
its financial accounts to market operators.

The company’s
audited financial result for the year ended January 31st, 2010, shows a
22.34 percent increase in turnover, from N6.774 billion to N8.287
billion. However, its profit after tax fell by 67.93 percent from
N334.229 million to N107.185 million, while the total net asset for the
period in review also depreciated by 7.57 percent, from N2.152 billion
to N1.989 billion.

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